Faraday Future Receives Approval for Continued Listing from the Nasdaq Hearings Panel Subject to Certain Compliance Deadlines
Faraday Future (Nasdaq: FFIE) announced that the Nasdaq Hearings Panel has approved its request to continue listing on Nasdaq, contingent upon meeting specific compliance deadlines. The company must meet periodic reporting requirements by July 31, 2024, and the minimum bid price requirement by August 31, 2024. Faraday Future has already taken steps to regain compliance, including filing its 2023 Annual Report, engaging a new independent auditor, and proposing a reverse stock split. The company aims to file its Q1 Form 10-Q by the end of July and its Q2 Form 10-Q timely. CEO Matthias Aydt expressed gratitude for the panel's decision and reaffirmed the company's commitment to compliance.
- Nasdaq Hearings Panel approved Faraday Future's request for continued listing.
- Steps taken to regain compliance include filing the 2023 Annual Report and engaging a new auditor.
- Company committed to filing its Q1 Form 10-Q by end of July and intends to timely file Q2 Form 10-Q.
- Must meet periodic reporting requirement by July 31, 2024.
- Must meet minimum bid price requirement by August 31, 2024.
Insights
Faraday Future Intelligent Electric Inc. receiving approval for continued listing on Nasdaq is a significant event for its shareholders and potential investors. This approval is conditional, requiring the company to meet the periodic reporting requirement by July 31, 2024 and the minimum bid price requirement by August 31, 2024. Such deadlines are critical as failing to meet them could result in delisting, a scenario that could drastically impact stock liquidity and investor confidence.
From a financial perspective, the company's effort to regain compliance by filing its 2023 Annual Report, engaging a new auditor and proposing a reverse stock split indicates a proactive approach. A reverse stock split typically consolidates shares to boost the stock price, which might help the company meet the minimum bid price requirement.
Short-term implications involve potential volatility as the company works to meet Nasdaq's requirements. Investors should monitor the stock closely during this period. In the long-term, should Faraday Future meet these requirements, it could stabilize its Nasdaq listing and potentially restore investor confidence. However, the company's future growth and financial stability will depend heavily on its ability to maintain regulatory compliance consistently.
The ongoing challenges faced by Faraday Future in maintaining its Nasdaq listing reflect broader issues within the electric vehicle (EV) sector, which often sees companies struggling with both technological innovation and regulatory compliance. The commitment to satisfy Nasdaq requirements by specified deadlines is commendable, but it also underscores the company's precarious position.
For retail investors, understanding the implications of a potential reverse stock split is crucial. A reverse split can be a red flag, signaling underlying issues with stock performance, but it can also be a strategic move to comply with listing requirements. Faraday Future's actions suggest a dual focus on short-term compliance and long-term sustainability.
Investors should also consider the competitive landscape of the EV industry. Meeting Nasdaq's requirements may position Faraday Future more favorably against competitors, but substantial growth will require continuous innovation and market adoption of their products.
The Company recently announced that it has taken steps to regain full Nasdaq compliance, including filing its 2023 Annual Report on Form 10-K at the end of May, engaging a new independent auditor, filing a preliminary proxy statement with a proposal to effect a reverse stock split, and committing to file its first quarter Form 10-Q no later than the end of July. In addition, the Company intends to timely file its second quarter Form 10-Q.
“We would like to thank the Nasdaq Hearings Panel for this decision as it is a positive step in the right direction for FF to regain full compliance,” said Matthias Aydt, Global CEO of FF. “We plan to continue on this trajectory of committing to completing additional requirements in the coming weeks.”
ABOUT FARADAY FUTURE
Faraday Future is the pioneer of the Ultimate AI TechLuxury ultra spire market in the intelligent EV era, and the disruptor of the traditional ultra-luxury car civilization epitomized by Ferrari and Maybach. FF is not just an EV company, but also a software-driven intelligent internet company. Ultimately FF aims to become a User Company by offering a shared intelligent mobility ecosystem. FF remains dedicated to advancing electric vehicle technology to meet the evolving needs and preferences of users worldwide, driven by a pursuit of intelligent and AI-driven mobility.
FORWARD LOOKING STATEMENTS
This press release includes “forward looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements, which include statements regarding the Company’s plan to regain compliance with Nasdaq listing standards, the Company’s intended reverse stock split, the Company’s intention to hold its annual meeting, and the timing of filing the Company’s periodic reports, are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements.
Important factors, among others, that may affect actual results or outcomes include, among others: the Company’s ability to continue as a going concern and improve its liquidity and financial position; the Company’s ability to satisfy the conditions for continued listing set forth by the Nasdaq Hearings Panel; the possibility that stockholder approval for the reverse stock split will not be obtained; the possibility that factors unrelated to the reverse stock split may impact the per share trading price of the Common Stock; the Company’s ability to regain compliance with, and thereafter continue to comply with, the Nasdaq listing requirements; the Company’s ability to pay its outstanding obligations; the Company's ability to remediate its material weaknesses in internal control over financial reporting and the risks related to the restatement of previously issued consolidated financial statements; the Company’s limited operating history and the significant barriers to growth it faces; the Company’s history of losses and expectation of continued losses; the success of the Company’s payroll expense reduction plan; the Company’s ability to execute on its plans to develop and market its vehicles and the timing of these development programs; the Company’s estimates of the size of the markets for its vehicles and cost to bring those vehicles to market; the rate and degree of market acceptance of the Company’s vehicles; the Company’s ability to cover future warrant claims; the success of other competing manufacturers; the performance and security of the Company’s vehicles; current and potential litigation involving the Company; the Company’s ability to receive funds from, satisfy the conditions precedent of and close on the various financings described elsewhere by the Company; the result of future financing efforts, the failure of any of which could result in the Company seeking protection under the Bankruptcy Code; the Company’s indebtedness; the Company’s ability to cover future warranty claims; insurance coverage; general economic and market conditions impacting demand for the Company’s products; potential negative impacts of a reverse stock split; potential cost, headcount and salary reduction actions may not be sufficient or may not achieve their expected results; circumstances outside of the Company's control, such as natural disasters, climate change, health epidemics and pandemics, terrorist attacks, and civil unrest; risks related to the Company's operations in
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Investors (English): ir@faradayfuture.com
Investors (Chinese): cn-ir@faradayfuture.com
Media: john.schilling@ff.com
Source: Faraday Future Intelligent Electric Inc.
FAQ
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